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United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2011
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 333-150925-01
 ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
  Delaware
    
    27-0213766(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Rd. 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (zip code)
 (412) 262-2830
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ
 o þ




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##### 



ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
(A DELAWARE LIMITED PARTNERSHIP)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1: Financial StatementsBalance Sheets as of March 31, 2011 and December 31, 2010
    
    
    3Statements of Operations for the Three Months ended March 31, 2011 and 2010
    
    
    4Statement of Changes in Partners Capital for the Three Months ended March 31, 2011
    
    
    5Statements of Cash Flows for the Three Months ended March 31, 2011 and 2010
    
    
    6Notes to Financial Statements
    
    
    7-15Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    15-18Item 4: Controls and Procedures
    
    
    18PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    19Item 6: Exhibits
    
    
    19SIGNATURES
    
    
    20CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 
 
 BALANCE SHEETS
 March 31,
    
    
    December 31,2011
    
    
    2010(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    3,157,700
    
    
    $
    3,032,600Accounts receivable  affiliate
    
    
    15,809,300
    
    
    
    9,916,400Short-term hedge receivable due from affiliate
    
    
    
    
    
    
    9,352,300Total current assets
    
    
    18,967,000
    
    
    
    22,301,300Oil and gas properties, net
    
    
    189,625,100
    
    
    
    193,989,900Long-term hedge receivable due from affiliate
    
    
    
    
    
    
    9,342,100Long-term receivable due from affiliate
    
    
    6,877,300
    
    
    
    $
    215,469,400
    
    
    $
    225,633,300LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    434,600
    
    
    $
    521,300Short-term hedge liability due to affiliate
    
    
    
    
    
    
    33,300Total current liabilities
    
    
    434,600
    
    
    
    554,600Asset retirement obligation
    
    
    1,412,700
    
    
    
    1,391,800Long-term hedge liability due to affiliate
    
    
    
    
    
    
    1,520,100Partners capital:Managing general partner
    
    
    17,513,600
    
    
    
    18,285,500Limited partners (22,928.90 units)
    
    
    182,381,200
    
    
    
    187,319,100Accumulated other comprehensive income
    
    
    13,727,300
    
    
    
    16,562,200Total partners capital
    
    
    213,622,100
    
    
    
    222,166,800$
    215,469,400
    
    
    $
    225,633,300
   3




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010REVENUESNatural gas and oil
    
    $
    10,100,200
    
    
    $
    5,581,900Total revenues
    
    
    500
    
    
    
    10,100,700
    
    
    
    5,581,900COSTS AND EXPENSESProduction
    
    
    2,196,400
    
    
    
    1,542,700Depletion
    
    
    4,513,100
    
    
    
    2,735,100Accretion of asset retirement obligation
    
    
    20,900
    
    
    
    18,500General and administrative
    
    
    46,800
    
    
    
    24,700Total costs and expenses
    
    
    6,777,200
    
    
    
    4,321,000Net income
    
    $
    3,323,500
    
    
    $
    1,260,900Allocation of net income:Managing general partner
    
    $
    1,562,600
    
    
    $
    732,400Limited partners
    
    $
    1,760,900
    
    
    $
    528,500Net income per limited partnership unit
    
    $
    77
    
    
    $
    23
   4




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE THREE MONTHS ENDED
 March 31, 2011
 (Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    


    Income/(Loss)

    
    
    TotalBalance at January 1, 2011
    
    $
    18,285,500
    
    
    $
    187,319,100
    
    
    $
    16,562,200
    
    
    $
    222,166,800Participation in revenues and expenses:Net production revenues
    
    
    1,888,800
    
    
    
    6,015,000
    
    
    
    
    
    
    
    7,903,800Interest
    
    
    100
    
    
    
    400
    
    
    
    
    
    
    
    500Depletion
    
    
    (308,700
    )
    
    
    (4,204,400
    )
    
    
    
    
    
    
    (4,513,100
    )Accretion of asset retirement obligation
    
    
    (5,500
    )
    
    
    (15,400
    )
    
    
    
    
    
    
    (20,900
    )General and administrative
    
    
    (12,100
    )
    
    
    (34,700
    )
    
    
    
    
    
    
    (46,800
    )Net income
    
    
    1,562,600
    
    
    
    1,760,900
    
    
    
    
    
    
    
    3,323,500Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    (2,834,900
    )
    
    
    (2,834,900
    )Distributions to partners
    
    
    (2,482,800
    )
    
    
    (6,698,800
    )
    
    
    
    
    
    
    (9,181,600
    )Asset contributions
    
    
    148,300
    
    
    
    
    
    
    
    
    
    
    
    148,300Balance at March 31, 2011
    
    $
    17,513,600
    
    
    $
    182,381,200
    
    
    $
    13,727,300
    
    
    $
    213,622,100
   5




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 Three Months EndedMarch 31,2011
    
    
    2010Cash flows from operating activities:Net income
    
    $
    3,323,500
    
    
    $
    1,260,900Adjustments to reconcile net income to net cash provided
by operating activities:Depletion
    
    
    4,513,100
    
    
    
    2,735,100Non-cash loss on derivative value
    
    
    81,700
    
    
    
    Accretion of asset retirement obligation
    
    
    20,900
    
    
    
    18,500Decrease (increase) in accounts receivable-affiliate
    
    
    1,325,000
    
    
    
    (3,241,500
    )(Decrease) increase in accrued liabilities
    
    
    (86,700
    )
    
    
    164,000Net cash provided by operating activities
    
    
    9,177,500
    
    
    
    937,000Cash flows from investing activities:Oil and gas well drilling contracts paid to MGP
    
    
    
    
    
    
    (46,501,500
    )Net cash used in financing activities
    
    
    
    
    
    
    (46,501,500
    )Cash flows from financing activities:Initial capital contribution by MGP
    
    
    
    
    
    
    (100
    )Partners capital contribution
    
    
    
    
    
    
    20,187,700Distributions to partners
    
    
    (9,052,400
    )
    
    
    Net cash (used in) provided by financing activities
    
    
    (9,052,400
    )
    
    
    20,187,600Net increase (decrease) in cash and cash equivalents
    
    
    125,100
    
    
    
    (25,376,900
    )Cash and cash equivalents at beginning of period
    
    
    3,032,600
    
    
    
    26,313,800Cash and cash equivalents at end of period
    
    $
    3,157,700
    
    
    $
    936,900Supplemental Schedule of non-cash investing and financing
activities:Assets contributed by managing general partner:Lease costs
    
    $
    
    
    
    $
    334,000Tangible drilling costs
    
    
    148,300
    
    
    
    4,774,800$
    148,300
    
    
    $
    5,108,800Asset retirement obligation
    
    $
    
    
    
    $
    83,400Distribution to managing general partner
    
    $
    129,200
    
    
    $
    
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
 
 NOTES TO FINANCIAL STATEMENTS
 March 31, 2011
 (Unaudited)
 NOTE 1  DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
    NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Use of Estimates
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Use of Estimates (Continued)
  Accounts Receivable and Allowance for Possible Losses
  Oil and Gas Properties
   March 31,
    
    
    December 31,2011
    
    
    2010Proved properties:Leasehold interests
    
    $
    3,178,000
    
    
    $
    3,178,000Wells and related equipment
    
    
    246,748,100
    
    
    
    246,132,200249,926,100
    
    
    
    249,310,200Accumulated depletion
    
    
    (60,301,000
    )
    
    
    (55,320,300
    )$
    189,625,100
    
    
    $
    193,989,900
  8




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Impairment of Long-Lived Assets
    Working Interest
   9




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Revenue Recognition
   Recently Adopted Accounting Standards
  NOTE 3  ASSET RETIREMENT OBLIGATION
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 3  ASSET RETIREMENT OBLIGATION (Continued)
  Three Months EndedMarch 31,2011
    
    
    2010Asset retirement obligation at beginning of period
    
    $
    1,391,800
    
    
    $
    1,152,700Liabilities incurred from drilling wells
    
    
    
    
    
    
    83,400Accretion expense
    
    
    20,900
    
    
    
    18,500Asset retirement obligation at end of period
    
    $
    1,412,700
    
    
    $
    1,254,600
 NOTE 4  COMPREHENSIVE INCOME
  Three Months EndedMarch 31, 20112011
    
    
    2010Net income
    
    $
    3,323,500
    
    
    $
    1,260,900Other comprehensive income:Unrealized holding gain on hedging contracts
    
    
    925,900
    
    
    
    4,672,700Less: reclassification adjustment for gains realized in net income
    
    
    (3,760,800
    )
    
    
    (369,900
    )Total other comprehensive (loss) income
    
    
    (2,834,900
    )
    
    
    4,302,800Comprehensive income
    
    $
    488,600
    
    
    $
    5,563,700
 NOTE 5  DERIVATIVE INSTRUMENTS
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
     12




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
  Fair Value of Derivative Instruments:
 Fair ValueBalance Sheet
    
    December 31,Derivatives in Cash Flow Hedging Relationships
    
    Location
    
    2010Derivative Commodity Contracts
    
    Current Assets
    
    $
    9,352,300Long-Term Assets
    
    
    9,342,10018,694,400Current liabilities
    
    
    (33,300
    )Long-term liabilities
    
    
    (1,520,100
    )(1,553,400
    )Total
    
    $
    17,141,000
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    Location of Gain
    
    GainRecognized in OCI on Derivative
    
    
    Reclassified from Accumulated
    
    Reclassified from OCI into IncomeDerivatives in
    
    Three Months Ended
    
    
    OCI into Income
    
    Three Months EndedCash Flow
    
    March 31,
    
    
    March 31,
    
    
    
    
    March 31,
    
    
    March 31,Hedging Relationship
    
    2011
    
    
    2010
    
    
    
    
    2011
    
    
    2010Commodity contracts
    
    $
    925,900
    
    
    $
    4,672,700
    
    
    Natural gas and oil revenue
    
    $
    3,760,800
    
    
    $
    369,900
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2
 Level 3
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES
  
    
    Drilling contracts to drill and complete wells for the Partnership are charged at
cost plus 18%. The cost of the wells includes reimbursement to the Partnerships MGP of
its general and administrative overhead cost. No amounts were paid by the Partnership to
its MGP during the three months ended March 31, 2011. The Partnership paid $46,501,500
to its MGP during the three months ended March 31, 2010.
 
    
    The Partnerships MGP contributed undeveloped leases necessary to cover each of the
Partnerships prospects and received a credit to its capital account. No credits were
received by the MGP for the three months ended March 31, 2011. A $334,000 credit was
received for the three months ended March 31, 2010.
 
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships statements of operations are payable at $975 per well, per month for
Marcellus wells, $1,500 per well, per month for New Albany and Indiana wells and $600
per well per month for horizontal Antrim Shale wells. For all other wells, a fee of $392
is charged per well, per month for operating and maintaining the wells. Well supervision
fees incurred were $298,000 and $132,200 for the three months ended March 31, 2011 and
2010, respectively.
 
    
    Administrative costs which are included in general and administrative expenses in the
Partnerships statements of operations are payable at $75 per well per month.
Administrative costs incurred for the three months ended March 31, 2011 and 2010 were
$22,300 and $11,500, respectively.
 
    
    Transportation fees, which are included in production expenses in the Partnerships
statements of operations, incurred for the three months ended March 31, 2011 and 2010
were $1,193,100 and $631,900, respectively.
 
    
    Assets contributed from the MGP which are disclosed on the Partnerships statements
of cash flows as a non-cash activity for the three months ended March 31, 2011 and 2010
were $148,300 and $5,108,800, respectively.
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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 NOTE 7  TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES (Continued)
 Subordination by Managing General Partner
  
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)
 Forward-Looking Statements
 When used in this Form 10-Q , the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. These risks and uncertainties
could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
  General
     15




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ATLAS RESOURCES PUBLIC 18-2009 (C) L.P.
NOTES TO FINANCIAL STATEMENTS (Continued)
March 31, 2011
(Unaudited)
 Results of Operations
  Three Months EndedMarch 312011
    
    
    2010Production revenues (in thousands):Gas
    
    $
    10,100
    
    
    $
    5,582Liquid
    
    
    1
    
    
    
    Total
    
    $
    10,101
    
    
    $
    5,582Production volumes:Gas (mcf/day) (1)
    
    
    18,470
    
    
    
    9,659Liquid (bbl/day) (1)
    
    
    1
    
    
    
    Total (mcfe/day) (1)
    
    
    18,476
    
    
    
    9,659Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.12
    
    
    $
    6.42Liquid (per bbl) (1)
    
    $
    14.54
    
    
    $
    Average production costs:As a percent of revenues
    
    
    22
    %
    
    
    28
    %Per mcfe (1)
    
    $
    1.32
    
    
    $
    1.77Depletion per mcfe
    
    $
    2.71
    
    
    $
    3.15
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl. Liquid gallons are converted into bbls by a ratio of 42 gallons
per bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(3)
    
    Average gas prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $81,700 for the three months ended March
31, 2011. The derivative gains are included in other comprehensive income and resulted
from prior period impairment charges.  16




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Natural Gas Revenues.
 Natural Gas Liquids Revenue
 Costs and Expenses.
   Liquidity and Capital Resources
       17




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Critical Accounting Policies
  Subordination by Managing General Partner
  
 ITEM 4.
    
    CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
   Changes in Internal Control over Financial Reporting
   18




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PART II OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
   
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
    Amended and Restated Certificate and Agreement of Limited Partnership for Public 18-2009 (C) L.P. (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Public 18-2009 (C) L.P. (1)31.1
    
    
    Certification Pursuant to Rule 13a-14/15(d)-1431.2
    
    
    Certification Pursuant to Rule 13a-14/15(d)-1432.1
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
Act of 200232.2
    
    
    Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 
 (1)
    
    Filed on October 15, 2008 in the Form S-1A Registration Statement dated October 15, 2008, File No. 333-150925-01  19




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SIGNATURES
   Atlas Resources, LLC, Managing General PartnerDate:  May 13, 2011
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the Board of Directors, 
Chief Executive Officer and President  Date:  May 13, 2011
    By:
    /s/ Jeffrey C. SimmonsJeffrey C. Simmons, Executive Vice President  OperationsDate:  May 13, 2011
    By:
    /s/ Sean P. McGrathSean P. McGrath, Chief Financial Officer  20